JOHANNESBURG (Reuters) -The South African rand was subdued for most of the trading session on Tuesday as investors awaited economic data due later in the week for clues on the health of Africa’s largest economy.
At 1327 GMT, the rand traded at 17.1925 against the dollar, about 0.2% weaker than Monday’s close.
“The ZAR lost some ground overnight, with the gold price retreating to close to $4000 and also on the back of U.S.
operators reducing their hopes of a U.S. cut next month,” said Adam Phillips, treasury specialist at Umkhulu Treasury.
Gold prices fell for a fourth consecutive session on Tuesday, weighed down by a firmer dollar and diminished prospects of a U.S.
interest rate cut next month.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.
Domestically-focussed traders will eye figures on October consumer inflation and September retail sales, due on Wednesday, followed by the central bank’s interest rate decision on Thursday.
Economists polled by Reuters expect the Monetary Policy Committee to cut its main lending rate by 25 basis points to 6.75%.
On the Johannesburg Stock Exchange, the Top-40 index was last down 1.4%, weighed mainly by mining stocks.
South Africa’s benchmark 2035 government bond also weakened as the yield rose 5.5 basis points to 8.675%.
(Reporting by Anathi Madubela and Sfundo Parakozov;Editing by Sherry Jacob-Phillips and Alexander Smith)
